Chinese AI startup DeepSeek burst into the AI scene earlier this year with its ultra-cost-effective, R1 V3-powered AI model. Consequently, it raised concerns among investors, especially after it surpassed OpenAI's o1 reasoning model across a wide range of benchmarks, including math, science, and coding at a fraction of the cost.
While DeepSeek researchers claimed the company spent approximately $6 million to train its cost-effective model, multiple reports suggest that it cut corners by using Microsoft and OpenAI's copyrighted content to train its model.
